inflation rates

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U.S. Inflation Rates Remain Major Sticking Point for Federal Reserve

The Fed

One of the biggest topics from this week's FOMC meeting was U.S. inflation rates, which remain well below the 2% mark the Federal Reserve has been targeting.

Yesterday (Thursday), U.S. Federal Reserve Chairwoman Janet Yellen announced the central bank will not be raising interest rates, in part because inflation rates remain too low.

Here's why inflation rates played such a large role in the Fed's decision...

Prepare Now for When the New MyRA Becomes "TheirRA"

In his recent State of the Union Address, President Obama unveiled something new: a retirement savings account to "help" Americans build a nest egg, coining it the "MyRA."

Something immediately felt wrong about the proposal... but I couldn't put my finger on it.

So I researched the new MyRA and found details to help you understand just how it works.

But I also saw some potential dangers there that you need to prepare for now...

The QE3 Dangers Bernanke Isn’t Telling You About

Hoping the third time is the charm, the U.S. Federal Reserve voted on Sept. 13 to launch another bond-buying program, QE3.

Equity and commodity markets cheered the Fed's move. Stocks rallied and analysts raised precious metals price forecasts.

QE3 differs from the first two rounds in that it is an aggressive open-ended purchase program of $40 billion per month of mortgage-backed securities. The buying is slated to continue until we reach substantial and sustained improvement in the U.S. economy, which won't be a short-term achievement.

The program aims to lower long-term interest rates, stoke consumer demand and bring down the elevated unemployment rate.

But some opponents think the latest stimulus measure from Fed Chairman Ben Bernanke will fail to achieve any of that.

In fact, the QE3 doubters have a lot to say - and anyone with money in the markets right now should pay attention to what could happen.

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How QE3 – Like QE1 and QE2 – Will Trigger Inflation

The traditional safe haven assets of gold (NYSE: GLD) and silver (NYSE: SLV) have surged in price due to the announcement of the latest round of quantitative easing, QE3 - but those aren't the only assets QE3 will push higher.

While QE3 might seem harmless to U.S. consumers, it is present every time they gas up their cars or buy food at the grocery store.

In fact, all three rounds of quantitative easing have led to higher priced commodities.

Whether you realize it or not, QE3 - same as the stimulus programs before it - is adding greatly to the costs of everyday life. QE3 is directly leading to higher prices for oil, food and the cost of imported goods.

Over time, that results in a tremendous consumer expense in all product and service categories.

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